Successful Business Cases

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Successful Business Cases Proposals ?!?Jim
WilsonPrincipalWSM ServicesOctober 2006
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Just as a thought starter

• Working in table groups
• What has been your experience with business
  proposals and tenders ?
• What are three characteristics of a successful
  proposal ?
• Why do you think business proposals fail ?
• How would your group recommend we improve the
  structure, format and presentation of business
  proposals ?
• So what does your group really want to take
  away from our workshop this evening ?

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Overview

• Three aspects of the proposal process
• The decision to bid
• Planning the bid / proposal
• Writing the proposal

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1. The decision to bid

• Stark realities
• Why bid ?
• Go or No-Go ?
• Critical success factors
• Go for the win
• Costing the bid

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The stark realities

• Most business cases and tender requests are
  financially driven best value for money
  translates into lowest price ???
• Can you really afford to undertake this contract
  if you win it ?
• Is the exposure worthwhile? Is there a good
  chance of longer term financial benefit?
• Is there an option to make up value through
  variations or other add-on aspects of the project
  ?

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Why bid?

• To make yourself known in the market.
• To attract large, base-line opportunities.
• Because sometimes its the only way to win that
  type of business.
• If in doubt, DONT tender or propose !
• Bidding is costly, time consuming and may
  distract you from more worthwhile business
  opportunities

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Go or No Go

• Which opportunities do you pursue?
• Is the outcome worth the cost of bidding?
• Is your company sufficiently robust to compete in
  this market?
• Are there long-term advantages to be achieved by
  submitting a bid (win or not)?

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Critical success factors

• Have a bid strategy.
• Develop a document plan.
• Ensure compliance, as appropriate.
• Present your strategy / solution clearly and
  succinctly.
• Collaborate and communicate clearly at all stages.

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Go for the Win !

• Define your goal
• to be noticed / acknowledged as a competitor.
• win a slice of the action.
• win the whole contract !
• Focus 100 effort on your bid strategy.
• Aim to be cost effective.
• Do NOT submit a response unless you are writing
  to win !

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Costing your bid

• Are all costs accounted for ?
• Can the base costs be discounted in any way ?
• Do you intend to offer discounts now or during
  negotiation ?

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2. Planning the bid / proposal

• Document / bid plan
• Structure of the RFT
• Structuring a successful response

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Document Plan

• Follow the guidelines provided by the client.
• Use their structures, methodologies where
  requested.
• Represent the way your organisation will provide
  value for money.
• Identify options.
• Include real costs if your submission is to be
  profitable.

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Create a bid plan that

• Identifies resources to create your response AND
  to conduct the contract.
• Highlights the necessary approvals that must be
  obtained in-house before you can submit your
  response.
• Assists with planning the submission so it is
  delivered on time.
• Communicates key strategies and messages.
• Focuses your bid team.

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Structure of RFT

• Usually prescribes the structure of the tender or
  proposal response. STICK TO IT!
• States what MUST be included.
• Usually demands a lot of detail.
• May ask the same question in different ways.
• Focuses on key performance indicators and
  mandatory requirements.
• HINTS at what the client expects to see!

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Structuring a successful response

• Always follow the structure provided in the
  tender document.
• Failure to follow the tender guidelines may
  result in your submitting a non-complying
  response.
• Non-compliance generally means the tender
  response is not read.

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3. Writing the bid / proposal

• Positioning write to sell
• Style marks
• Hot buttons
• Next steps and follow-up

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Positioning - write to sell

• Be persuasive.
• Make sure your submission is informative.
• Use the active voice and a positive, upbeat tone.
• Keep it friendly, yet purposeful.
• Be consistent.
• Keep to the point.
• Make the response all about the client.
• Provide examples of similar work where possible -
  reference sites, referees.
• Demonstrate / document risk management.

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Style marks !!

• Focus on benefits first, supported by the
  features of your offering, then provide proof.
• Focus on the hot buttons - the hooks that get
  them in.
• Short, tight, succinct.
• Use the customers headings and language.
• Aim at the decision maker(s).
• Technical, but not techy.
• Aim at creating the desire to read further and
  know more about your organisation and your offer.

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Hot buttons !!

• The customers key procurement issues
• if you dont satisfy these, the proposal will be
  rejected !!
• cross reference compliance requirements against
  headings.
• May be formal e.g. RFT / RFP.
• May be informal e.g. political sensitivities or
  internal factors that you need to be aware of.
• Determined by stakeholders - people who make or
  influence procurement / selection decisions
• client, decision-makers, end-users, influencers,
  gatekeepers.

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Hot buttons !!

• To identify hot buttons, check or consult
• customer contacts sources
• current contracts or supplier arrangements
• RFTs / RFPs
• web sites, annual reports, public documents
• industry associations, sources and publications
• use your own judgement.
• Ensure that you verify your data and information
  before building them it to your documents.

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Hot buttons analysis
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Hot button weighting
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The follow-up presentation

• It is a
• continuation of your tender response or proposal
  rather than a whole new story.
• chance to clarify technical or other issues
  generated by your response to the tender
  documents.
• time to build your clients confidence in your
  organisation and its ability.
• prime opportunity to establish shared values and
  common philosophies with your client.

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Feedback

• Dont be afraid to ask!
• Provides a valuable comparison with other
  competitors.
• Is a useful tool to avoid repeating mistakes.
• Can be used next time to help decide whether or
  not to bid.
• Is a guide only - remember the appraising panel
  or the client is only human and has its own
  prejudices.

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Now that weve won ?!?

• Inception meeting.
• Project management / governance.
• Early wins.
• Building relationships - client, decision-makers,
  end-users, influencers, gatekeepers.
• Deliverables timetables.
• The WOW factors !!